In the first quarter of 2025, U.S. household equity wealth is projected to decline by $3 trillion, marking the largest drop in 2.5 years. This decline is raising concerns about consumer spending, particularly as the wealthiest 10% of Americans account for half of total consumer expenditures. Analysts, including those from Bank of America, indicate that this downturn could lead to a further pullback in spending on big-ticket items such as cars and appliances. The S&P 500, a key benchmark for U.S. stocks, has also been affected, with predictions of an additional 8% decline due to a visibly tired consumer base. UBS's chief strategist noted that the slowdown in consumption is significant and could push the S&P 500 down to 5,300 points. Comparatively, equity holdings had previously surged by $9 trillion in 2024, reaching a record $56 trillion, highlighting the stark contrast in current market conditions.